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Post by mrclondon on Apr 18, 2016 17:12:33 GMT
For additional commentary on the valuation of hotels in the area, I'd recommend lenders with an AC account re-read the valuation report for loan 201 which is very close by.
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Liz
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Post by Liz on Apr 18, 2016 17:36:07 GMT
The question is, do we trust the site on not.
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Post by profunder on Apr 18, 2016 18:09:00 GMT
The question is, do we trust the site on not. I am not sure that the question is do we trust the site, the question is do we trust the RICS valuer. The valuation report is confusing, but it's not the FS who is valuing it. FS have done some due diligence in understanding and checking that valuation, they have given us the details here in their post. Also they have strengthened the loan with a PG. It's up to you if this is sufficient security, I'm interested - I wouldn't give this a A+ rating though, it's a B loan for me. Am I the only one sticking up for FS here on this loan, hope in not wrong All I'm waiting for is to be closer to drawdown date. My biggest problem is the time it may take to drawdown at the moment.
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Post by earthbound on Apr 18, 2016 21:09:22 GMT
The question is, do we trust the site on not. Also they have strengthened the loan with a PG. Wouldn't lend diddly on a PG.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Apr 18, 2016 21:20:42 GMT
This valuation has been conducted by a firm in Liverpool. I prefer a valuer who knows the local area. The fact that Mostyn was spelt Mosston tells me the valuer has had more family ice-creams in Llandudno, than RICS valuations.
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Post by profunder on Apr 18, 2016 22:10:24 GMT
I'm not one to deny the risks of this loan and wouldn't lend on a PG except in very rare circumstances. I said this loan is strengthened by the PG, it's not worth much but it wasn't even listed in the security.
In regards to ice cream, sounds good. I might go check it out and get an ice cream, do they have strawberry sauce?
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mikes1531
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Post by mikes1531 on Apr 18, 2016 22:53:45 GMT
The problem I have is that the valuation looks like it is based on having PP despite it stating that it doesn't include any hope value. If the planning application is turned down, and the place has to remain a hotel, I really don't feel I have a clue about its actual value. The 57% LTV is a bit of a comfort, and so is the PG, but I'm still reluctant to invest. If fundingsecure can get enough commitments -- either from investors or underwriters -- to make this one go then I will watch from the sidelines. I suspect, however, it will take incentives -- bonus interest for larger investors and/or cashback, plus an indicator of when interest will start accruing. (Too much of my FS account is currently in loans awaiting activation and my actual return is going to be noticeably less than the nominal rates for the loans.) Because of the questions related to the valuation, IMHO FS would be well advised to get a second opinion from a valuer local to Llandudno, with specific requests for values with and without PP. That might even be enough to convince me -- and, I suspect, a number of others -- to invest.
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mikes1531
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Post by mikes1531 on Apr 18, 2016 23:03:25 GMT
This valuation has been conducted by a firm in Liverpool. I prefer a valuer who knows the local area. The fact that Mostyn was spelt Mosston tells me the valuer has had more family ice-creams in Llandudno, than RICS valuations. Not only that... They seem to be of two minds about the 90-day valuation... Doesn't exactly inspire confidence, does it?
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ben
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Post by ben on Apr 20, 2016 6:58:32 GMT
Looks like this one is going to need something to get it completed, only one up and not filling that fast
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Post by profunder on Apr 20, 2016 9:42:56 GMT
Has anyone seen the planning app? I couldn't find one.
I am working on the basis the valuation is based on the planning being approved (as stated in section 1). I am assuming no hope value refers to any hope of further development beyond the mentioned planning proposal.
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ben
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Post by ben on Apr 20, 2016 12:10:26 GMT
it states in the report that in section 12 that was valued without PP, hope ie as it is now however in section 11 it is using flats to justify it valuation, I can accept that could be its final value or value with planning permission. If it was that easy to increase the value the charity would have done it and then sold it on
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mikes1531
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Post by mikes1531 on Apr 20, 2016 13:15:44 GMT
it states in the report that in section 12 that was valued without PP, hope ie as it is now however in section 11 it is using flats to justify it valuation, I can accept that could be its final value or value with planning permission. If it was that easy to increase the value the charity would have done it and then sold it on ben: Since there's always a risk that PP could be turned down, investing in a planning application in the hope of receiving PP and making a gain is a bit of a gamble. The rules of the charity might not allow its trustees to approve such a gamble no matter how likely a positive result. (And the valuer doesn't seem to think a positive result is particularly likely.)
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stevio
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Post by stevio on Apr 20, 2016 16:01:11 GMT
FS really need to look at this again
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Post by earthbound on Apr 20, 2016 16:25:29 GMT
The question is, do we trust the site on not. Liz I personally trust the site, but not too sure about their DD on this one, it appears to me, and i think most others ,that the valuation figure seems to have been reached assuming planning permission is either in place or will be accepted, when this is funded and the cash handed over, what i would like to know is what are the plans if PP is turned down, SS state this is a bricks and mortar valuation only, cannot see where they get that from considering it could not be sold for £575k last year. seems this loan is entirely reliant on the valuation, which i just do not trust.
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Steerpike
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Post by Steerpike on Apr 20, 2016 16:53:22 GMT
The hotel did not sell at £575k because at that time the seller required the buyer to continue to run the hotel and it was operating at a loss, so not a very attractive proposition.
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